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First homebuyers will not be shut out: QBE
A leading Australian mortgage insurer has spoken out against recent reports that first homebuyers would struggle to find finance this year.
QBE LMI, in a joint report with BIS Shrapnel, said that loan approvals for first homebuyers would drop from 190,000 in 2009 to 115,000 in 2010 - a 40% decline attributed to the removal of the First Home Owner Boost.
This was not, however, a historically weak figure, given that the last time a grant boost was withdrawn, in 2001, first homebuyer demand slumped 60%.
Ian Graham, CEO of QBE LMI, rejected a JPMorgan/Fujitsu report that warned of credit rationing in 2010. Graham said increasing competition would not allow such a scenario.
"Anything that involves limiting borrowers' access to finance will only result in increased demand ... which, if not met by one lender or one group of lenders over time, will be satisfied by others in the market," he said.
By BN | 14 Apr 2010
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